In a survey of investors conducted in June 2023, Redseer found that 50% of investors expect the funding spring to return over the next 6-12 months. Kanishka Mohan, a partner at Redseer Strategy Consultants, spoke during the company’s business summit Ground Zero 8.0, offering insights into startup funding and what lies ahead.

Key Takeaways

  • 50% of investors surveyed are positive that the startup funding spring will return over the next 6-12 months.
  • 5% of global funding and 20% of APAC funding is going to Indian startups.
  • The next set of unicorns would emerge from sectors such as D2C-BPC, D2C-Health & Wellness, Diagnostics & Clinics, Gaming & App Studios, etc.


09 August 2023, Bengaluru: Redseer’s Ground Zero 8.0 – Bridge over Troubled Waters was abuzz with discussions about the global economic slowdown and the funding winter that has gripped the startup world. While gloom prevails momentarily, Kanishka Mohan explained why the ongoing funding winter would lead to an even stronger long-term story for India’s public and private funding environment.

India’s startup ecosystem, the partner says, has matured rapidly in the last five years. The number of registered startups has grown 9X in the last four years, from about 10,000 startups in CY18 to about 90,000 startups in CY22. At the same time, the number of active investors has grown 2X from 400 investors in CY18 to about 900 investors as of FY22. Apart from the doubling of investors at home, global sources of funding have also become more diversified than before. In all, the USA, EU, UAE, and Japan are the largest source of funding for Indian startups making up 5% of total global funding and 20% of total APAC funding.

Talking about the prevailing conditions, Kanishka explains that 50% of investors surveyed by Redseer in June are positive the funding spring would return in the next 6-12 months, while 17% of respondents thought it would happen sooner. The rest believe it would be 12-18 months or more before the funding winter passes.

The expectation with funding patterns so far is that 2023 will revert to the long-term trends in line with the years CY17 to CY20, and hover between $12 to $15 Bn, beyond which it is expected to be bullish into CY24 and touch $15-20 Bn. The number of funding deals which dropped early in CY23 to 700-900 deals from 1,519 deals in CY22 is also expected to shoot back in CY24 to 1,000-1,200 deals. Moreover, VCs today have more dry powder than ever, also signalling a positive outlook are the total number of deals this year, 90% of which are likely to be seed or early-stage deals similar in trend with what was seen since CY17.

Of the 1000+ startups evaluated by Redseer, 10 break-out themes stand out according to the partner at the strategy consulting firm. They include =BPC, -Health & Wellness, Diagnostics & Clinics, Gaming & App Studios, Personal Loans, CRO/CRM, Industrial eB2B, Insurtech, DevOps, and Finance. These sectors, Redseer projects will give rise to the next set of unicorns going further into the decade.